Question: O E Homework: HW11 Question 6, Problem 3 Part 3 of 5 HW Score: 94.67%, 14.2 of 15 points Points: 1.2 of 2 Save The

O E Homework: HW11 Question 6, Problem 3 Part 3
O E Homework: HW11 Question 6, Problem 3 Part 3 of 5 HW Score: 94.67%, 14.2 of 15 points Points: 1.2 of 2 Save The ABC Company had two options for sourcing molded plastic parts, and these options are presented in the table below. Now, the ABC Company has identified another potential supplier for the molded plastic parts. The new supplier has bid $0.0600 per part but also will impose a shipping and handling charge of $0.0300 per unit. Additional inventory handling charges should amount to $0.0020 per unit. Finally, purchasing costs are estimated at $5 per month for the length of the 36-month contract. Note that the forecasted demand is a total of 1 million units over the 36 months Click the icon to view the total cost analysis for the sourcing decision at ABC. a. The total cost per unit for the new supplier is $0.0922. (Enter your response rounded to four decimal places.) The outsourcing option with the new supplier is cheaper than insourcing b. Suppose the three-year volume is expected to rise to 1.5 million, rather than 1 million, molded plastic parts. The total cost per unit associated with insourcing is now senter your responses rounded to four decimal places.) A TO SC ce

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!